Brexit – what do RSLs in Scotland think?

A new report on the potential impact of leaving the European Union on Scottish housing associations and co-operatives has found that 80% of respondents foresee a possible negative impact.

The key areas of concern highlighted in the report, The Potential Impact of Brexit on Housing Associations in Scotland, released by the Scottish Federation of Housing Associations (SFHA), are the ongoing uncertainty; impact of uncertainty on financial markets and impact on private finance; and the possible impact on construction and workforce supply chain and costs.

However, the report also found some organisations are more pragmatic and see some balance between the risks and opportunities of Brexit.

SFHA members prioritised their key areas of concern as follows:

Capacity of the construction industry to deliver new social housing developments

Financial investments via European funds for social housing

Equally weighted were: workforce capacity for service delivery and private sector investment in social housing

Potential changes in regulation and procurement

Demand for social housing and future developments

Nearly 70% of respondents think Brexit will decrease the capacity of the construction workforce to deliver on new social housing developments and over 80% believe it will impact on the supply chain of trade and building materials through increasing costs in general – inflation and exchange rates – and in building materials and components in particular.

However, some members said they thought opportunities could arise from leaving the EU regarding developing a greater supply of Scottish and British construction trades and workforce.

While the majority of respondents said they have not experienced any change in attitude from potential private finance providers or investors since the referendum, there are examples of uncertainty and concerns in future growth and development plans due to current discussions with lenders.

Mary Taylor, Chief Executive of the SFHA, said:

“The capacity of the construction industry to deliver new social housing is paramount at a time when 50,000 affordable homes are to be delivered within five years. It is therefore a huge concern that almost 70% of respondents to our survey think Brexit will decrease capacity of the construction workforce.

“While there is little optimism about the challenges ahead, there is a recognition that it may prompt better training and employability opportunities. However, to exploit those effectively, and minimise disruption, we need to start acting now. I have already written to Scottish Ministers to encourage them to create a significant number of apprenticeships in order to safeguard the future of the housebuilding sector in Scotland.

“Access to funding and investment is also an area of huge concern for the social housing sector, and we will be seeking clarity on the situation as negotiations progress.”